Driving innovation in banking and insurance

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1 Driving Innovation in the Banking and Insurance Industries with Mobile

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Mobile Banking and Insurance applications and enablement.

Transcript of Driving innovation in banking and insurance

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Driving Innovation in the

Banking and Insurance

Industries with Mobile

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www.StrongbackConsulting.com

About Us: Strongback Consulting• IBM Advanced Business Partner

– Rational, WebSphere, Lotus, Information Management certified

– Strongly focused on Enterprise Modernization and application lifecycle management

– Key Industries Served: Finance, Insurance, Healthcare, Manufacturing, Travel & Leisure

– Rational Design Partner for HATS and other Rational enterprise modernization technologies

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Agenda

Mobile apps in Banking and Insurance

Mobile and multichannel considerations

Unique features of mobile apps

Building enterprise mobile apps

How Rational solutions can help

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Mobile applications present an enormous set of opportunities…

Business to Consumer

Improve customer satisfaction Deeper customer engagement and loyalty Drive increased sales through Personalized

offers Customer service Competitive differentiator Improve brand perception Deeper insight into customer buying

behavior for up sell and cross sell Improve in store experience with mobile

concierge services

Business to Enterprise

Increase worker productivity Improved claims processing Increase revenue through sales engagements Extend existing applications to mobile workers

and customers Reducing fuel, gas, or fleet maintenance costs

that are relevant in particular industries Increase employee responsiveness and

decision making speed Resolve internal IT issues faster Reduce personnel cost (utilizing personal

owned instead of corporate issued devices)

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Mobile is a top priority on CIO’s list

Source: 2011 CIO Study, Q12: “Which visionary plans do you have to increase competitiveness over the next 3 to 5 years?”; Global sample (n=3,018); Banking (n=311)

Business Intelligence and analytics

Virtualization

Business process management

Self-service portals

Risk management and compliance

Cloud computing

Mobility solutions

Collaboration and Social Networking

83%

74%

68%

60%

60%

58%

57%

55%

81%

76%

70%

48%

70%

72%

53%

48%

Global sample Banking

Most important visionary plan elements (Interviewed CIOs could select as many as they wanted)

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The scope of mobile banking projects falls into 3 categories

Informational

• Checking account balance

• Checking transaction history

• Receiving alerts (balance, transaction limits, etc.)

• However, this provides limited revenue potential for payments providers and, for the most part, is already included in current retail banking offering.

Transactional

• Transferring money to another person

• Paying for goods and services

• Paying utility bills

• Receiving remittances

• This has a large revenue potential in growth markets, but there are potential adoption hurdles in developed markets, which are highly regulated.

Value Added Services

• Receiving coupons based on device location

• Transaction flagging for fraud detection

• Accessing goods and services of cross industry offerings (retail, health services, travel, etc.)

• In these cases, there is a large revenue potential in developed markets, as these services usually require richer/ more secure client sessions and consequent device and network infrastructures.

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Customer mobile banking needs in developed markets Mobile users today expect access to the same information they have on the

desktop, in a mobile-friendly format

Most customers already happily use mature payments instruments

Need to provide persuasive value propositions in the form of :

•direct savings, for example, receiving coupons based on device location

OR

•significantly improved experiences that are more relevant, Safer, Faster, Cheaper.

Customer mobile banking needs in growth markets

In many growth markets, including the BRIC countries (Brazil, Russia, India, China) over 90% of transactions are still in cash

By far the largest mobile opportunity is replacement of these cash transactions

In many growth markets, including the BRIC countries (Brazil, Russia, India, China) over 90% of transactions are still in cash

By far the largest mobile opportunity is replacement of these cash transactions

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Mobile opportunities in the Insurance Industry Insurers setting strategies to capitalize on abundance of continued double-digit growth

of mobile devices across all regions. • Functionality will focus on:

Connecting with the customer for: • Sales/pricing• Pay bills• Initiating/managing claims• Even roadside assistance

Already insurers are deliveringapps for accident claims that can be used at the accident location

Connecting with the field force/agents for:

• Sales/pricing (of life policies)• Claims assessing• Marketing materials• Comparisons

In Growth Markets, we are seeing an increase in Insurance premium income, in line with increasing prosperity.As most transactions in these countries are in cash, there is a great opportunity for paying Insurance bills via mobile channels

Also, societal and government pressure to offer micro-insurance to poor rural populations

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Agenda

Mobile apps in Banking and Insurance

Mobile and multichannel considerations

Unique features of mobile apps

Building enterprise mobile apps

How Rational solutions can help

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Multichannel Customer Experience for Banking and Insurance

Improve your customer experience, reduces inefficiencies and allow for better engagement with customers.

Enable multichannel applications

Deliver rich functionality and improved user-friendliness

Deploy customer business processes that span across different channels

Enhance Internet banking and insurance with Web 2.0 technologies

Provide banking/insurance anytime, anywhere on any mobile device

Reinvigorate individual channels and harmonize different channels

Reuse technological and business components common to multiple channels

Customer

Branch(Bank)

Kiosk

SMS

Chat

Point of sale

Voice

Web

SocialMedia

Apps

Email

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Customer focused enterprises are truly delivering a superior customer experience by:

Engaging customers in insightful conversationsNot just providing a pleasant banking/insurance experience

Providing consistent, cross-channel experienceThe same as they get from retailers and airlines – including self-service, mobile, social, etc.

and at the same time

Capturing every customer moment of truthIn real-time across both staffed and automated channels, and trigger appropriate actions

Marketing and selling based on customer eventsProgress from mass marketing to precise, event-based marketing with customer information and predictive analytics

Lowering operational expenses…Achieve superior customer experience and lower operational expenses through process optimization and balancing channels

Customer

OrganizeInformation

OptimizeInteraction

Gain Insight

Analyze and Derive

Capture and Notice

Point of Sale

Branch

Kiosk

SMS

Chat

Voice

Web

SocialMedia

Apps

Email

Customer

OrganizeInformation

OptimizeInteraction

Gain Insight

Analyze and Derive

Capture and Notice

Point of Sale

Branch

Kiosk

SMS

Chat

Voice

Web

SocialMedia

Apps

Email

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Back-end system integration considerations for mobile apps

IBM Point-of-View

Channel integration provides precious insights into channel intelligence as well as increasing the effectiveness of cross-selling and campaign delivery.

Enterprise Services Bus

DEPOSITS LOANS PARTNERS

Information Integration

BRANCHFull ServiceSupermarketMobile Bankers

SELF SERVICEATMKiosk

ELECTRONICWeb, WirelessField force, agents

CALL CENTERInboundOutbound

PARTNERS

Security & Access

Analytics & Intelligence

Reusable Components

Service Invocation

ChannelIntegration

IBM Point-of-View

The real-time and always-on feature highlights the importance of cross-channel experience. For example, when customer receives a push notification on her iPhone, she expects the call center to know about it too.

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Agenda

Mobile apps in Banking and Insurance

Mobile and multichannel considerations

Unique features of mobile apps

Building enterprise mobile apps

How Rational solutions can help

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Mobile applications are very different than PC or server-based applications

User interface & hardware needs

Mobile hardware and user interfaces evolve much faster than the typical enterprise software cycle

User interfaces must be easy and obvious

Screen real-estate is precious

Typing should be minimized

Battery life needs to be long and monitored during usage

Devices are often exclusively touch-based

Customer driven needs

Mobile users require efficient and timely access to information

Interactions are short and focused, interruptions are common

Social interactions are important

Timeliness of data must be communicated

Often used for monitoring as opposed to active consumption

Applications must still be usable when out of wireless coverage

Security is critical

Mobile users today expect high-fidelity access to the same information they have on the desktop, presented in an easy-to-learn, mobile-friendly (often touch-friendly) format.

Why is mobile different?

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Functionality unique to mobile banking/insurance on smartphones

IBM Point-of-View

FIs need a business model that takes advantage of the fact that a mobile phone may be the only thing many people keep within arm’s reach all day. For example, expense tracking combined with mobile payment and bill-pay is a very “sticky” feature. Many FIs already have in place a basic Mobile solution (statements, transfers, auto claims etc). FIs need to go one step further and 'visualize' the new services that will add value to both, customers and FIs, by using mobile devices.

Mobile + Social + (Person to Person (P2P) Payment for banking)

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Payments considerations for mobile

>9 Stakeholders must cooperate

Paymentprocessors

Chip / handset manufacturers

PaymentNetwork

Telco

Merchant, Agent

Consumer

Bank, Insurer

Transit

Applicationproviders

Business model questions Who owns the customer? Bank/insurer or telco centric model? How to share revenue? First-mover advantage or wait? Alone or partner? Who holds the payment risk? What regulations apply?

Technological questions Is the technology stable and secure? How will chips get onto handsets?

IBM Point-of-View

Basic payment functions (e.g., bill-pay, international remittance) should be offered with convenience. Business model for advanced features such as mobile wallet, Near Field

Communication (NFC) and P2P payment differ from country to country depending on factors incl. regulations and cross-industry dynamics among telcos, payment network operators and leading banks. These represent the biggest future opportunity for banks. Banks, insurers must have a game plan in place and be prepared for the market development..

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Agenda

Mobile apps in Banking and Insurance

Mobile and multichannel considerations

Unique features of mobile apps

Building enterprise mobile apps

How Rational solutions can help

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WebWeb HybridHybrid NativeNative

Performance

Dev cost

Dev time

App portability

Native functionality

App store distribution

Extensible

ReasonableReasonable ReasonableReasonable ExpensiveExpensive

ShortShort ShortShort LongLong

HighHigh HighHigh NoneNone

NoNo AllAll AllAll

FastFast Native speed if neededNative speed if needed Very FastVery Fast

NoNo YesYes YesYes

NoNo YesYes YesYes

3 models of mobile banking/insurance application to choose from – Web, Hybrid & Native

Recommended

IBM Point-of-View

Hybrid approach can achieve the look-and-feel and rich functionality of native apps, while lowering the cost to develop for multiple OS/versions as well as on-going maintenance and upgrades.

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Building an enterprise mobile application is more than just writing the code

Specific challenges in building mobile apps:

Imperatives from line of business & customers

• Strong demand by Line of Business

• Customers expect higher quality of user experience with mobile apps

• More direct involvement from users/stakeholders in design

Fragmentation of technology and platforms

• Highly fragmented set of mobile devices and platforms

• Native programming models not portable across devices.

• Very large number of configurations of devices, platforms, carriers, etc. to test

Urgent time-to-market, rapid pace of innovation

• Mobile landscape evolves at a much faster pace

• More frequent releases and updates for apps with more urgent time-to-market demands

• Lack of best practices guidance on how to deliver mobile applications

How do you develop for and test against multiple platforms effectively?

How do you align business and development to deliver apps that delight users

How do you gain control of your development process and accelerate time to delivery?

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Agenda

Mobile apps in Banking and Insurance

Mobile and multichannel considerations

Unique features of mobile apps

Building enterprise mobile apps

How Rational solutions can help

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Rational takes a two-pronged approach to help customers deliver enterprise mobile applications successfully

1. Rational CLM helps customers manage your development lifecycle:

2. Mobile specific-capabilities help customers accelerate your development and test:

Design Code Security

Mobile-specific:

Test

Traceability acrossthe development lifecycle

Open platform for integrated development lifecycle

Traceability of development activity across entire project lifecycle

Real-time planning that is consistently accurate and up-to-date

Tightly integrated with mobile code development capabilities

Centralized code sharing and distributed mobile app build

Integrate and manage full range of mobile testing tools and techniques

Code construction tool using web-based technology to write multi-platform applications

Distributed builds of mobile applications On-device functional testing of mobile applications

Trends in Mobile Apps Development Strong customer demand for more sophisticated and integrated mobile banking and insurance capabilitiesTechnology is changing rapidly alongsideBanks/insurance companies need to develop enterprise mobile apps faster and more cost effectively, with agility and qualityIntegrated tools are required to help plan, define, design, build and test the apps.

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Customer Story: ING Direct Canada

Runs on iPhone, iPad, and BlackBerry

Provides remote banking for ING Direct customers

A collaborative effort between ING DIRECT and IBM GBS

IBM WebSphere Application Server IBM Rational Application Developer 7.5 and

Rational Software Architect 7.5

The solution extends the ING DIRECT Canada transactional Web infrastructure based on

Reaching mobile banking customers with IBM software and services

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Banking and Insurance companies face a number of challenges in driving Innovation with Mobile

Mobile applications are growing rapidly across all industry segments

Mobile applications are very different than traditional PC or server based applications

Challenges of enterprise mobile application development

• Need to provide seamless multi-channel experience and integrate with back-end systems

• Traditional application development challenges remain

• Mobile application operating systems are fragmented – across Apple, Android, RIM etc.

• Need to test across many different devices and operating systems

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Rational accelerates delivery of enterprise mobile applications

Build mobile applications

Connect to, and run backend systems in support of mobile

Manage mobile devices and applications

Secure my mobile business

Extend existing business capabilities to mobile devices

Transform the business by creating new opportunities

Client Initiatives

Rational helps customers build enterprise mobile applications that:

• Run on multiple mobile devices• Connect to enterprise back-end

applications and information systems• Deliver high quality user experience• Fulfills fast time-to-market requirements• Are rapidly updated with new releases

Rational Collaborative Lifecycle Management – accelerating mobile app development across platforms

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Worklight StudioAn extensible environment with maximum code reuse and per-device optimization

Worklight ServerUnified notifications, runtime skinning, version management, security features, integration and delivery

Worklight Runtime ComponentsExtensive libraries and client APIs that expose and interface with native device functionality and the Worklight server

Worklight ConsoleA web-based console for real-time analytics and control of your mobile apps and infrastructure

Worklight is a Mobile Application Platform (aka MAP or MEAP)

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RTC – Worklight Build Engine Integrationprovides a controlled build environment for mobile apps – both native and hybrid

Team Concert Client

Build SCM

sourceexecutables, logfiles

Team repository of apps

Studio

iOSSDK

AndroidSDK

RIMSDK

Builder

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Addressing mobile testing challenges using Rational Quality Manager (RQM), Green Hat and “DeviceClouds”

Middle Tier ServerClient Tier Devices Back-end Data & Services

Testing Challenges

1. The number of different mobile devices

2. Middle tier and backend set up

3. Accessing physical devices/networks for testing

Solutions

1. Use test-coverage optimization from RQM

2. Isolate the other tiers of the app using Green Hat and concentrate on the mobile device code

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Socialize with us on Facebook & LinkedIn http://www.facebook.com/StrongbackConsulting

http://www.linkedin.com/company/290754

Subscribe to us athttp://feeds.feedburner.com/StrongbackConsulting

Discover us at:http://www.strongback.us

Watch Us at Youtube http://www.youtube.com/user/strongbackconsultinghttps://vimeo.com/user7519232

Call us at: 904-351-6658

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Resources for Learning

Other Case Studies and Technology Examples

• http://www.slideshare.net/strongback/how-a-tactical-hats-solution-became-a-strategic-asset-a-customer-story

• http://www.slideshare.net/strongback/innovate2012-modernize-host-applications-for-mobile-devices

• http://www.slideshare.net/strongback/build-smarter-user-interfaces-for-legacy-applications-with-ibm-rational-host-access-transformation-services

• http://www.slideshare.net/strongback/rational-hats-and-his-v8-overview

• http://www.slideshare.net/strongback/ibm-innovate-2011-what-every-system-i-developer-needs-to-know

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